Use the information in Table 13.8 to address this question. For what range of output is each location superior?
What will be an ideal response?
Location A is preferred from an output volume of 0 through 16,666 units
100,000 + 10x = 150,000 + 7x
50,000 = 3x
x = 16,666.66666
Location B is preferred from 16,667 to 25,000 units
150,000 + 7x = 200,000 + 5x
2x = 50,000
x = 25,000
Location C is preferred above 20,000 units
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A) $15,000
B) $5,000
C) $10,000
D) $20,000
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